A journey to financial freedom. Q&A with Brendan Dale.

Meet Brendan Dale, a software developer by day and personal finance blogger by night (and probably every spare minute he can find) On his blog ‘Take Charge of Your Money’ Brendan talks about his journey to financial freedom and the lessons he’s learning along the way. We caught up with Brendan to learn a bit more about what he does and why.

What does financial freedom mean to you?

To me, financial freedom simply means having enough money to be able to choose whether to continue to work or not. It doesn’t mean being rich and having everything the heart desires. It’s about having enough passive income to maintain a comfortable, and often frugal, lifestyle. This implies two things:

1) Being debt free 2) Having an additional source of income. I.e. not your salary

Knowing that you would have enough to survive if you lost your job certainly takes a lot of stress away. It also allows for more choice when it comes to where you work, when you work and why you work. The goal is to cover the baseline of your needs. You can then decide how much more you want.

What was the ‘aha’ moment that inspired you to tackle the financial freedom challenge?

My "aha" moment came when I moved to Cape Town several years ago and hit rock bottom in terms of finances. I had a good job, but debt on two credit cards, a bank overdraft and car loan were sinking me. I figured I had to do something drastic and that's when I started searching for personal finance books and blogs. I learnt about the concept of #FIRE (Financial Independence, Retire Early), paid off my debt, sorted out my finances and have kept learning! The latest book I’ve read is called ‘Your Money or Your Life’ by Vicki Robin; definitely worth picking up.

Are you financially free yet?

Not yet! I have a home loan, and my additional income stream is merely a trickle. The important thing, however, is that I have a plan in place and know what I’m aiming for.

What is the additional income stream you’re working on?

My main additional income stream comes from a Trust that I set up a few years ago and which owns and rents out 4 residential properties. All income currently remains in the Trust and forms a large part of my financial independence plan (The costly property investment courses turned out to be worth it!).

I also do some after-hours freelancing and have signed myself up to the 24 hour support call roster at work which pays me a little extra too. All this additional income goes straight into my personal home loan which I’m currently focusing on paying off.

What do you mean when you tell people to ‘take charge of your money’.

This doesn't just mean saving money by bringing lunch to work; it's a far wider reaching concept. Taking charge of your money means that you actively learn about investments vehicles, tax implications, how interest works and how fund managers make money through fees. It's not good enough to simply waive this responsibility off on to your financial advisor and trust that they have your best interests at heart.

That said, it’s not necessary to become a financial expert yourself. Taking charge of your money is about being inquisitive and asking questions. Don't just believe what you're told. Do a little research for yourself because at the end of the day no one is as invested in your financial future as you are.

What do you struggle with most when it comes to managing your finances?

My biggest challenge is dealing with unplanned expenses. More often than not these are things which my partner deems "essential", but which I see as "nice to have". We have an emergency, but our definition of what an emergency is differs greatly.

Money management can become a difficult subject in any relationship, but it’s important to keep talking about it and managing one anothers’ expectations.

If you could only give one piece of advice to someone looking to improve their financial situation what would it be?

Get rid of all consumer debt! That's credit cards, store cards and personal loans. Debt almost always comes at a high cost and it's not worth investing R1000 at say 14% interest when your credit card debt is charged at 22% (or more).

Debt also means that you use your current month’s salary to pay for previous month’s purchases and often leaves you with very little left for the current month which in turn leads you to spending more on your credit card. It's a downward spiral that can quickly get out of hand! Getting rid of debt and only spending money that you actually have will not only improve your finances but will set you up for future success!

Why do you blog?

Blogging is a great way to express one's thoughts and views on life and forces you to formulate and express your thoughts clearly and logically. As much as I hope this is helpful to readers, self-awareness and clarity of mind is immensely useful to me too. My initial reason for blogging was purely selfish as I wanted to learn what it entailed and how the world of social media worked.

The blog has grown past the stage of being an experiment and has become a fully-fledged personal finance blog. I'm really enjoying sharing my personal growth, development and learning process and the best part is that I know I'm making a difference. It's wonderful to hear stories from readers who have managed to take small steps towards managing their money better. It's the personal messages I receive that motivate me to continue.

10X calculator assumptions & disclaimers

Fees are the only difference between the “Industry” and 10X projections.

The fees used in the projections are inclusive of VAT. The investment referred to as “Industry” is assumed to charge total fees of 3% including VAT per annum. Morningstar’s Global Fund Investor Experience 2015 study shows that the average total expense ratio is 1.63% pa (which includes investment and performance fees), with the cost of advice and an administration platform adding an additional 1% to 1.5% pa. The investment with 10X assumes a total fee of 1% including VAT per annum and that the client comes directly to 10X (i.e. no advisor fee). This is the maximum investment fee charged by 10X.

The calculator assumes the you save 10% of the salary you input and that this grows annually in line with inflation.

The investment term and savings period is assumed to be from your current age to age 65, unless you are over 55. If you are over 55 the investment term is assumed to be 20 years.

Your projected investment value is shown in real terms (today's money). This means we have shown what future values would be worth today, once we have stripped out inflation.

The projected average and poor investment returns are based on historic market returns after inflation from 1900 to 2017. Historically over your savings period, one in four outcomes have been worse than the outcome shown under poor returns and three in four have been better. The projections therefore account for historical market fluctuations.

The projections are based on the 10X High Equity portfolio, which is designed for investors with an investment term of 5 years and longer. The portfolio may be highly volatile over shorter periods.

The projections do not account for tax in any way.

The projections shown are based on information provided by you regarding your financial situation. 10X Investments does not in any way guarantee the projected benefits shown; we offer these projections merely to assist you in your financial planning. Although our projections take account of the historical returns earned in the South African and International markets, future market returns are uncertain. Past performance does not guarantee nor indicate future results.

The calculations provided should not be construed as financial, legal or tax advice. In addition, such information should not be relied upon as the only source of information. This information is supplied from sources we believe to be reliable but we cannot guarantee its accuracy.

10X Investments is a licensed Financial Services Provider #28250 and S13B Funds Administrator #24/444. The information on our website does not constitute advice as defined by the FAIS Act.

10X calculator assumptions & disclaimers

Fees are the only difference between the “Industry” and 10X projections.

The fees used in the projections are inclusive of VAT. The investment referred to as “Industry” is assumed to charge total fees of 3% including VAT per annum. Morningstar’s Global Fund Investor Experience 2015 study shows that the average total expense ratio is 1.63% pa (which includes investment and performance fees), with the cost of advice and an administration platform adding an additional 1% to 1.5% pa. The investment with 10X is assumed to charge a fee according to the 10X Living Annuity scale. The maximum fee in this scale is 0.86% including VAT per annum.

Your projected income and investment value are shown in real terms (today's money). This means we have shown what future values would be worth today, once we have stripped out inflation.

The projected income in the first year will be equal to your desired income provided your annual income is between the regulatory limits of 2.5% and 17.5% of your investment value. Each year your projected income will keep pace with inflation, provided that it falls within these regulatory limits. The number of years that your projected income is able to keep pace with inflation without exceeding the regulatory cap of 17.5% is displayed on the outputs.

The projected average and poor investment returns are based on historic market returns after inflation from 1900 to 2017. These returns are based on the portfolio you selected (defaulted to 10X High Equity if your term exceeds 5 year). Historically over your savings period, one in four outcomes have been worse than the outcome shown under poor returns and three in four have been better. The projections therefore account for historical market fluctuations.

The projections shown are based on information provided by you regarding your financial situation. 10X Investments does not in any way guarantee the projected benefits shown; we offer these projections merely to assist you in your financial planning. Although our projections take account of the historical returns earned in the South African and International markets, future market returns are uncertain. Past performance does not guarantee nor indicate future results.

The calculations provided should not be construed as financial, legal or tax advice. In addition, such information should not be relied upon as the only source of information. This information is supplied from sources we believe to be reliable but we cannot guarantee its accuracy.

Note that the 10X Living Annuity is underwritten by Guardrisk Life Limited (FSP No. 76).

10X Investments is a licensed Financial Services Provider #28250 and S13B Funds Administrator #24/444. The information on our website does not constitute advice as defined by the FAIS Act. The 10X Living Annuity is underwritten by Guardrisk Life Limited (FSP No.76).

10X calculator assumptions & disclaimers

Fees are the only difference between the “Industry” and 10X projections.

The fees used in the projections are inclusive of VAT. The investment referred to as “Industry” is assumed to charge total fees of 3% including VAT per annum. Morningstar’s Global Fund Investor Experience 2015 study shows that the average total expense ratio is 1.63% pa (which includes investment and performance fees), with the cost of advice and an administration platform adding an additional 1% to 1.5% pa. The investment with 10X is assumed to charge a fee according to the 10X Investment fee scale and that the client comes directly to 10X (i.e. no advisor fee). The maximum fee charged by 10X in these scales is 1.04% including VAT per annum.

Your projected benefits are shown in real terms (today's money). This means we have shown what future values would be worth today, once we have stripped out inflation.

The projected benefits are shown at age 65, unless you have changed the retirement age on the output page.

Where applicable, the projected monthly income assumes that you purchase an inflation-linked guaranteed annuity at retirement with your projected investment value. This estimate assumes that you use your entire projected investment value to purchase an annuity at retirement. Our estimate is based on the recent price of an inflation-linked guaranteed annuity without a spouse. An inflation-linked guaranteed annuity will provide you with an income that grows annually with inflation and pays you an income for the remainder of your life.

The projected average and poor investment returns are based on historic market returns after inflation from 1900 to 2017. Historically over your savings period, one in four outcomes have been worse than the outcome shown under poor returns and three in four have been better. The projections therefore account for historical market fluctuations.

The projections above are based on the default investment strategy called the 10X default glide path, unless you changed the investment portfolio on the output page . The 10X default glide path automatically matches the investment portfolio’s asset allocation to your assumed retirement age. This ensures that when you are more than five years from retirement that you mainly own assets that are expected to deliver high returns - with expected higher volatility of returns - and that the portfolio will gradually be switched into less volatile assets - with expected lower returns - in the last five years before you retire, with the aim of preserving capital.

The projections shown are based on information provided by you regarding your financial situation. 10X Investments does not in any way guarantee the projected benefits shown; we offer these projections merely to assist you in your financial planning. Although our projections take account of the historical returns earned in the South African and International markets, future market returns are uncertain. Past performance does not guarantee nor indicate future results.

The calculations provided should not be construed as financial, legal or tax advice. In addition, such information should not be relied upon as the only source of information. This information is supplied from sources we believe to be reliable but we cannot guarantee its accuracy.

10X Investments is a licensed Financial Services Provider #28250 and S13B Funds Administrator #24/444. The information on our website does not constitute advice as defined by the FAIS Act.

10X calculator assumptions & disclaimers

Fees are the only difference between the “Industry” and 10X projections.

The fees used in the projections are inclusive of VAT. The investment referred to as “Industry” is assumed to charge total fees of 3% including VAT per annum. Morningstar’s Global Fund Investor Experience 2015 study shows that the average total expense ratio is 1.63% pa (which includes investment and performance fees), with the cost of advice and an administration platform adding an additional 1% to 1.5% pa. The investment with 10X assumes a total fee of 0.57% including VAT per annum and that the client comes directly to 10X (i.e. no advisor fee).

Your projected benefits are shown in real terms (today's money). This means we have shown what future values would be worth today, once we have stripped out inflation.

The projected average and poor investment returns are based on historic market returns after inflation from 1900 to 2017. Historically over your savings period, one in four outcomes have been worse than the outcome shown under poor returns and three in four have been better. The projections therefore account for historical market fluctuations.

Your projected monthly income (if applicable), grows in line with inflation until your money is depleted.

The projections are based on the 10X High Equity portfolio, which is designed for investors with an investment term of 5 years and longer. The portfolio may be highly volatile over shorter periods.

The projections do not account for tax in any way.

The projections shown are based on information provided by you regarding your financial situation. 10X Investments does not in any way guarantee the projected benefits shown; we offer these projections merely to assist you in your financial planning. Although our projections take account of the historical returns earned in the South African and International markets, future market returns are uncertain. Past performance does not guarantee nor indicate future results.

The calculations provided should not be construed as financial, legal or tax advice. In addition, such information should not be relied upon as the only source of information. This information is supplied from sources we believe to be reliable but we cannot guarantee its accuracy.

10X Investments is a licensed Financial Services Provider #28250 and S13B Funds Administrator #24/444. The information on our website does not constitute advice as defined by the FAIS Act.